Posted by Mark Paskell on Sun, Jan 04, 2009 @ 06:41 PM
After the holidays, homeowners in the market for home improvement services, start calling residential contractors to set up work for the spring. Do you have a procedure for the inbound lead call and a form to capture vital prospect information about them and their requests? Or do you use any available scrap paper, post it notes or the proverbial napkin to write down the information and struggle retrieving and reading the chicken scratch later? Who will answer the phone, talk to your potential client and will they know what to do to make a professional first impression?
Your chance to make a positive first impression is achieved in the first couple of minutes. This is your opportunity to show your professionalism, educate, and bond with the prospect.
Create and use a client intake form or lead sheet that is set up to capture vital information about your prospect. Also prepare questions designed to encourage your prospect to talk as much as possible about their needs, wants and concerns. The quality of these questions are your opportunity to show your professionalism, set yourself apart from the competition and garner valuable insight into the mindset of the prospect.
This form should be ready every time you or a trained employee are about to speak to a potential client. Information needed should include date, time of call, person taking the information, address, home and work phone numbers, e-mail address, work requested, all owners names properly spelled and pronounced, best time to contact, when do they want to do the project and age of home. Questions should be on the form so that you don't leave it to memory to remember what to ask.
Another thought to think about, will you or your employee be able to give this phone call your undivided attention? Or will you or your employee be multitasking while you are on the phone with your potential customer? This conversation should take precedence over any other work going on in the office. The risk of missing something is too great to chance. Allow yourself to listen intently to the prospect and don't rush if they are talking. The more they say the more information you will learn about them.
Do you have a lead form ready if a prospect calls?
mark the coach
Posted by Mark Paskell on Thu, Jan 01, 2009 @ 03:58 PM
2008 was a challenging year for contractors in the residential remodeling industry. With declining home values, tightened credit, lack luster new home construction, smaller remodeling projects and erosion of consumer confidence many contractors are facing uncertain futures. The time and need for change has never been more apparent than now. We need to analyze our businesses and make sure that we are able to deliver outstanding products and services to the Next Level Consumer.
Here are 11 obstacles that if not addressed, may prevent residential contractors from succeeding in the new economy.
1. Writing an accurate and effective business plan based on a defined strategy and goals consistent with best practices in the industry.
2. Developing a marketing plan that generates leads (your target customer) consistently.
3. Defining a sales process and learning how to sell on purpose, solutions to meet the needs of your customer and your company.
4. Learning how to develop and use the right markup to cover all your direct and indirect costs, materials, labor and overhead, and then leave your company a fair profit after all the bills are paid.
5. Learning how to develop and maintain consistent cash flow. Poor cash flow kills businesses.
6. Learning how to define roles and responsibilities and delegate to the appropriate trained employee. Contractors who wear too many hats cannot do it all.
7. Learning how to develop, train and use systems in line with industry best practices. Consumers are expecting educated and trained contractors who are experts in their field.
8. Learning how to manage expectations of the Next Level Consumer.
9. Learning how to attract, hire and compensate the right employees and not accepting high turnover.
10. Developing professional proposals, differentiation and deciding to set up and do business legally (licensing, OSHA compliance, the proper insurance coverages and classifications of employees, W-2 employment).
11. Decision to not accept work from the wrong client and performing work outside core competencies. Trying times can influence the decision to work for the wrong client and take work you are not set up to do.
What other obstacles impact the success of residential contractors?
mark the coach
Posted by Mark Paskell on Thu, Jan 01, 2009 @ 03:23 PM
To all our readers, friends, residential contractor clients and business associates we hope your New Year is filled with prosperity and happiness.
mark the coach
Posted by Mark Paskell on Tue, Dec 30, 2008 @ 09:01 AM
Owning and operating a residential contracting business presents unique challenges for contractors servicing the homeowner market. These challenges are unique because the industry has very little structured business training for residential contractors who provide services to a savvy, demanding and educated consumer. Contractors with formal business education or experience from the commercial construction industry tend to do better with today's homeowner consumer if they use and apply, industry best practices and systems.
If you are a residential contractor, who learned from the school of hard knocks, you are discovering that practices and methods that worked a few years ago don't work as well or at all, with today's new consumer. If you are formally educated on how to run a business, are your practices and methods aligned to work with today's new consumer?
As you finalize your business plan for 2009, ask yourself the following question and please share your insights with the readers by responding to this blog post.
What do you think are the top 5 challenges facing your residential contracting business?
P.S. Next post, 11 challenges for today's residential contractor.
Posted by Mark Paskell on Sun, Dec 28, 2008 @ 07:53 PM
I wrote a post a few weeks ago about writing your business plan for 2009. How are you doing? We have a few more days until the New Year, will you be ready?
We met a contractor two weeks ago who is struggling with his 15 year business. and was curious if he used planning and goals for his business. We asked him if the results from this year matched up with his business plan and goals set at the end of last year. He replied that he always has his plan and goals in his head, he never writes the plan or goals down.
It is not uncommon for contractors to omit writing a business plan. Many contractors fell into the business with little of no business training. Many residential contractors will tell you they come from the school of hard knocks and that is all the training they need. Some have even told me they are hard headed and don't like change!
Unfortunately, this does not bode well for residential contractors who fail to plan. The residential homeowner is more savvy, educated and concerned who they invest their dollar with to work on their most valuable shrinking asset. A business without a plan will have a difficult time surviving in the new economy. Life and business are too confusing and hectic to try to navigate the waters without a clearly defined destination and a plan to get there.
One of the major fatal mistakes of residential contractors is the failure to write a basic business plan, set goals and define their strategy. Contractors with formal business education or commercial construction experience seem to be more likely to write a business plan and use goals, however this is not always the case.
For those contractors who have not written a plan there are several ways to learn how. It does not need to be perfect, just effective at describing what you are going to do and need to do, to reach your goals. You can research online, buy a business planning book form Journal of Light Construction book store, go to Borders, Amazon.com, go to the library, ask your CPA, hire a contractor business coach, join an association like NARI, NAHB, seek out a mentor, go to SCORE, and go to contractor forums to learn form other contractors.
Now that you know where you can go to obtain information on how to write a business plan will you do it?
A basic requirement of building a successful business is developing and writing down a business plan and goals. If you doubt this, ask 5 of the most successful people you know and convince yourself.
In December of 2009 when I meet you and ask how do your results of year 2009 match up with your business plan and goals you prepared at the end of year 2008?
What will your response be?
mark the coach
Posted by Mark Paskell on Fri, Dec 26, 2008 @ 04:07 PM
First a bad economy and now residential contractors have to contend with the media portrayal that contractors never show up when they said they would? Can you believe it?
Thanks USA Today!
What do you think about this cartoon and homeowners' perception of residential contractors?
mark the coach
Posted by Mark Paskell on Wed, Dec 24, 2008 @ 11:47 PM
It's been 10 months since I started my contractor coaching business for residential contractors. I am grateful for all the support from business associates, supporters and most of all the many contractor clients who hired me to help them with their businesses. I consider coaching you an honor.
As I look back at the business plan I put together in 2007 it is interesting that many of the goals I wrote down and went after have been realized.
Believing that you can accomplish specific goals and putting an action plan in place has yielded a viable niche business. I truly have realized a dream come true. As Earl Nightingale says "you become what you think about".
As the year comes to a close before you know it, we will be thinking about New Year resolutions. I will be working on mine after the holiday when my business plan for 2009 will be refined. The plan will be reduced to writing and backed up with goals that will be measured and tracked. I will again use the principles of thinking right as taught by Napoleon Hill in "Think and Grow Rich" . He says "what the mind of man can conceive and believe it can achieve"
How about you?
Have you done your plan for 2009?
After the holiday is a great time to start if you haven't.
My wish for you today, have a Merry Christmas and thank you for all the support and encouragement you have given me throughout the year.
mark the coach
Posted by Mark Paskell on Tue, Dec 23, 2008 @ 09:27 AM
Recently members of my Linkedin network formed new business networking groups. The quality of the individuals and companies represented are stellar. Members of the groups include architechs, designers, kitchen and bath contractors, general contractors, remodelers, manufacturers', and other professionals with ties to the residential construction industry.
These groups allow members to pose questions about their business, their industry, marketing, sales, consumer trends, what's going on in a specific area and how to obtain useful information to solve problems.
This is a simple cost effective way to network with industry professionals and become known in your industry. Following is a link to the groups.
The groups are Architect, Professional Remodeler, and Home Remodeling Sales. Come join us and stay informed on topics effecting our industry. Better yet, come join and ask us a question about a challenge you currently face. The members may have the answer to your challenge and your only investment will be your time!
http://www.linkedin.com/groups?gid=1507177&trk=hb_side_g
mark the coach
Post #4
Posted by Mark Paskell on Mon, Dec 22, 2008 @ 04:30 PM
Recently a Contractor Talk.Com member referenced a new EPA fine assessed against a Massachusetts contractor. This new rule is another regulation to contend with. If you are residential remodeling contractor working on homes built before 1978 they are subject to the lead paint notification rule.
The article;
Release date: 09/22/2008
Contact Information: David Deegan, (617) 918-1017
(Boston, Mass. - Sept. 22, 2008) - A Medford, Mass. residential renovation and construction contractor will pay a cash penalty of $63,832 for violating the federal lead paint disclosure law that applies to renovations of residential housing.
An EPA inspection found that M.F. Reynolds Inc. of Medford violated the federal Pre-Renovation Rulethat requires contractors to provide lead hazard information to 121 owners of pre-1978 residential property 60 days prior to the start of renovations. The requirement for contractors to notify residential customers about lead hazards prior to renovation work is recent. This case is the first pursued by EPA within New England, and is one of the first cases nationally.
Common renovation activities like sanding, cutting, and demolition can create hazardous lead dust and chips by disturbing lead-based paint, which can be harmful to adults and children. Contractors and renovators are required to provide an EPA pamphlet to residential customers 60 days prior to renovation work. The pamphlet provides information on the risks associated with lead-based paint and how to take measures to protect one's family from those risks during renovations or construction.
The existing housing stock in New England has thousands of older homes with lead paint. Our public officials are keenly aware that this lead paint rule may be another way to enforce compliance on obtaining permits. Building inspectors, state regulators, EPA and OSHA are all experiencing budget shortfalls and are looking for every opportunity to increase revenue.
Another point to consider is how this information can be used to differentiate your company in a positive way to help you win the confidence of an educated consumer. Educate yourself on the regulation and share this information with your prospects. This will confirm your expertness in the eyes of the homeowner. Then ask if they were educated by other remodeling contractors they are considering. If they say no, ask them if they are concerned that the other contractor didn't tell them about the lead paint rule. It may cast some doubt on the other guy and set you apart as the better company.
Finally, imagine if a homeowner hires you and discovers the rule while you are working on the house. Do you think it may present a possibility where the homeowner has doubt and can justify not paying you for avoiding the rule?
What are you doing to comply with the new lead paint regulations?
post #3
Posted by Mark Paskell on Mon, Dec 22, 2008 @ 06:30 AM
When confronted with challenges sometimes it is easier to give up than to stay focused on what we want. Some say this year has been the Perfect Storm for the American people. Yesterday's post talked about keeping and maintaining a great attitude by working on yourself and minimizing exposure to things like negative news and the media. Now let's talk about staying the course in spite of challenges facing the residential construction industry.
Today, I am sharing with you a subject (persistence) taught by Napoleon Hill in the book "Think and Grow Rich". This fine work was produced over 70 years ago. It was commissioned by the late Andrew Carnegie. Mr Carnegie's request to Napoleon Hill was that he write a book on how to become successful by studying the habits of successful men and women of the day. The book was to be written so that any average individual of sound mind and health could read and apply it to become successful if they wanted to. Rather than re-word his fine work I am quoting words from his chapter on persistence as printed in "Think and Grow Rich"
Following are some phrases as printed in Napoleon Hill's book. The concepts may seem simple and old fashioned, however they still apply to todays' principles of success in both business and personal life.
You can train yourself to be persistent
Persistence is a state of mind, therefore it can be cultivated. Like all states of mind, persistence is based upon definite causes, among them these:
a. Definiteness of purpose. Knowing what one wants is the first and, perhaps, the most important step toward the development of persistence. A strong motive forces one to surmount many difficulties.
b. Desire. It is comparatively easy to acquire and to maintain persistence in pursuing the object of intense desire.
c. Self-reliance. Belief in one's ability to carry out a plan encourages one to follow the plan through with persistence. (Self-reliance can be developed through the principle described in the chapter on autosuggestion).
d. Definiteness of plans. Organized plans, even though they may be weak and entirely impractical, encourage persistence.
e. Accurate knowledge. Knowing that one's plans are sound, based upon experience or observation, encourages persistence; "guessing" instead of "knowing" destroys persistence.
f. Cooperation. Sympathy, understanding, and harmonious cooperation with others tend to develop persistence.
g. Will-power. The habit of concentrating one's thoughts upon the building of plans for the attainment of a definiteness of purpose leads to persistence.
h. Habit. Persistence is the direct result of habit. The mind absorbs and becomes a part of the daily experience upon which it feeds. Fear, the worst of all enemies, can be effectively cured by forced repetition of acts of courage. Everyone who has seen active service in war knows this.
How to Develop Persistence.
There are four simple steps which lead to the habit of persistence. They call for no great amount of intelligence, no particular amount of education, and but little time or effort. The necessary steps are:
1. A definite purpose backed by burning desire for its fulfillment.
2. A definite plan, expressed in continuous action.
3. A mind closed tightly against all negative and discouraging influences, including negative suggestions of relatives, friends and acquaintances.
4. A friendly alliance with one or more persons who will encourage one to follow through with both plan and purpose.
These four steps are essential for success in all walks of life. The entire purpose of the thirteen principles of this philosophy is to enable one to take these four steps as a matter of habit.
I have read and studied "Think and Grow Rich" for over 25 years. The principles in the book are simple and work. The key is that you must put in the work to get the result. Now is the time to "sharpen your saw" while it is slow in the industry. The economy will rebound and the Next Level Consumer will be looking for The Next Level Contractor. The contractor of the future will be the one who has spent this down time wisely investing in himself and his business. Things you can do during the down time; read positive books, listen to cd's or tapes, sales training, business planning, marketing plan, hire a contractor coach, work on system development and more.
What are you doing for you and your business the next two weeks to prepare for next year's market?
Post #2